Secondary Stocks
Secondary Stocks
Secondary stocks
are still up there in investor confidence-they simply are not in the blue
chip league. The easiest distinction of this is through a complicated financial area known as
market capitalization by which financiers determine how much money would be required to
bring such a company to the market today. This is often determined by what the company
actually came to the market with, regardless of when it happened. Suffice it to say for our
purposes that stocks of this type still include well-established companies such as BancOne
(finance), Teledyne (technology), and Best Foods (food service). Even though the chances
are slim that these companies will go out of business, secondary stocks do tend to be a little
more volatile-meaning the price fluctuates more-than blue chip stock. This could be due to
any number of reasons, not the least being that these companies as a general rule are
smaller than blue chips and/or do not have as established a reputation.
